Lecture03 Planning of Ports

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TTETTE-- 6755 Port Planning and Development6755 Port Planning and Development

Lecture #03 Lecture #03

The Planning of Ports

L. Prieto-Portar 2009





The Three Phases of the Planning Process.The Three Phases of the Planning Process.

Phase I: Preliminary Planning:

1) Site selection of the port;

2) Port economics;

3) The environmental impact of the port facilities.

Phase II: Detailed Planning: 4) Choosing the best layout for the port;

5) Choosing the types and dimensions of the port facilities;

6) Estimating the pricing policies of the port.

Phase III: Strategic Planning:



Phase I: Preliminary Planning. Phase I: Preliminary Planning.

1) Site selection of the port.

a) Area requirements:

- The nature of the port (cruises, bulk cargo, containers, etc).- The transportation needs (RR, highway, river barges, etc).

- The storage needs (immediate trans-shipment, none, etc).

- The type of industries served (now and future).

Location and Growth:

Factors:- Land-side (foundation conditions, overland communications, …);

- Water-side (distance to deepwater, waves, tides, …);

- Wind strength (strong winds, hurricanes, …);- Growth of ports and growth of adjacent lands are interrelated;

- Economy of size.



b) Suitable protection of the harbor:

- Prevent damaging wave action.- Prevent damaging wind action.

- Dredge the results of sedimentation.

- Prevent damage from flowing ice.

- Seek possible protection behind an island.

- Seek protection in a deep natural bay.

- Seek protection in a sheltered lagoon.

c Facilities and utilities:

Long term investments:- Dredged channels

- Quay walls and wharves

- Permanent buildings (warehouses, offices)

Short term investments:- Cranes, fork-lifts, trucks

- Tugs, dredgers

- Vehicles



d) Port Services:

Bringing Ships in and out of the Port:

- Pilotage;

- Towage;

- Maintaining channels, marks, and buoys.

Handling Cargo:

- On-Board versus On-Dock;

- Se arate rom ort o erations.



2) Port Economics. 2) Port Economics.

a) First considerations:- Costs of the new facilities;

- Benefits versus their costs;

- The consequences of these actions;

- The alternatives.

b) Inter-port competition:- Geographical location and facilities at the neighboring ports;

-- Government policies;

-- Efficiencies derived from the port layout;

-- .

c) Marginal Costs and Port Pricing:- Marginal costs estimates of the elasticity of demand for port services;

- Short-term or long-term marginal costs.

d) Economies of Scale:- The minimum cost of a large port is below that of a smaller port;

- Control port costs to help to expand future facilities.

e) Congestion levies::

- Congestion indicates that a valuable and scarce resource is priced too low;

-- Ports usually do not increase their tariffs due to congestion;

- Creates administrative problems.



3) The environmental impact of the port facilities. 3) The environmental impact of the port facilities.

a) Erosion of the seabed and nearby islands. .

b) Obstruction in movements of sediment, current swells and waves.

c) The ecological impact on marine life (for example, in Miami it affects the migration of manatees, sharks, etc).

d) Remedies: For example,

- Design deep sea harbors.-- Design and build artificial islands.



Phase II: Detailed Planning: Phase II: Detailed Planning:

4) Choosing the best layout for the port.

The designers of ports today develop their layouts with computerized models that

simulate a large number of factors, such as,- navigation technology,

- traffic flows,

- government policies, etc., in accordance with seaborne trade and competition.

There are now factors that have severed the functional ties between port and thehinterland city and demonstrate the inadequacy of current port layouts, for these

reasons,

- the growing sizes of ocean vessels (to reduce shipping costs);

- the world-wide use of containers reaching deep into hinterlands;- pipelines now carry both wet cargoes (fuel, fruit juices, etc) and slurry products;

- the development of integrated transportation systems (inter-modal);

- the growing consciousness of the environmental assets of the urban waterfronts.



The Port of Long

Beach includes

approximately3,000 acres of

land and 4,000

acres of water

located on San

Pedro Bay, aprotected

embayment on

the coast of

California.

During 2000,

$98.2 billion in

trade, including

more than theequivalent of 4.6

million TEUs,

moved across

Long Beach's

wharves..



5) Type and Extent of the Required Facilities.

The economic growth in the world’s seaborne trade and shipping has createdchallenges that have imposed new and changing requirements on ports, which arebecoming more capital-intensive with less dependency on manpower. Ports have beentaken over by major types of equipment, mainly container handling and dry bulkcargo equipment, and have therefore created much faster operations and cost-effective

facilities. The Challenges and Countermeasures from Seaborne Trade Shipping are:

Challenges Solutions or Countermeasures.

- , ,

capital deepening (increasing facility productivity).- Increase of ship size: Deepening and lengthening of cargo berths;;

- New transport system: Constructing new specialized terminal facilities;

Roads/RR/bridges/tunnels with higher capacities;

- New special trades: Special terminals able to handle complicated cargoes;Specialized trade may be lost in competition.

- Increased sailing speed: Requires ‘speed ports’;

Overcapacity may increase the risk of economic losses.

- Fluctuations in demand: Improve port and receive high prices for its services.



A new port function is called consolidation (also known as the container revolution),

has evolved over the recent decades, which is a consequence of the integration in the

ports of their physical distribution systems.

Dry bulk cargo is generally loaded on to these containers by shore-based facilities

with unloading performed by either shore or ship-mounted equipment.



Modern gantry cranes can unload a ship in a few hours. These cranes, however, are very

expensive; each unit above cost around five million dollars.



Gantry cranes



Ro-Ro facilities include hardened decks and wharfs.



Other port major types of equipment

are:

Conveying Systems:

Ship Loaders:



Ship Unloaders:

Self-unloading/loading systems:



Tanking facilities for petroleum and chemical products.



Silos for grains.



Mid-stream operations.





6) Port Pricing.6) Port Pricing.

The prices of a particular port to shippers and export-import businesses are criticalto their survival. Every port is now facing national and worldwide competition. The

port manager can only maintain the port’s market share by utilizing their facilities

and services at optimum levels, and control their revenue/expenses.

The customer’s financial health will determine the port’s growth, stability or failure.

Costs and Pricing Policy. Profit versus Non-profit. Revenues.

- Dues and charges to ships.- Harbor dues (net registered tonnage)

- Berth dues

- Mooring dues

- Towage fees

- Light dues- Cargo handling fees

- Other services (garbage removal, sewerage, water, fuel,…) fees.

Cross-subsidization.



Phase III: Strategic Planning: Phase III: Strategic Planning:

Strategic Planning is a tool used by managers use to make major decisions. Theshipping and port business is increasingly competitive and demands that ports

make strategic decisions about their pricing, and future investments in

infrastructure, etc. This type of strategy provides direction to an organization to

achieve their goals.

The strategic planning process involves input from various port participants:



The objectives to solve with strategic planning include:

1) Assessing the external environment;

2) Defining the port’s mission, goals and objectives;

3) Analyzing the port’s current situation;

4) Identify all the critical issues;

e ne e s ra eg c a erna ves;

6) Select an optimal strategy, and

7) Implement the selected strategy.





Conclusions:

1. From concept to construction, the port planning process never ends.

2. Planning is a continuous and is a very dynamic process for the success of

any port.

3. The planning for a new port requires determining the most suitablelocation for a port, the type and extent of the facilities required for the bestayou , por econom cs, e env ronmen a mpac o e por ac es on e

surroundings and finally port pricing.

4. Once a port is operational the focus shifts to strategic planning.

Lecture03 Planning of Ports

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